ECCB Working Paper - What is Driving Toursim Flows to the ECCU

Table of Contents

1 Introduction ............................................................................................................................... 1

2 The Tourism Industry ................................................................................................................ 2

2.1 Tourism in the Eastern Caribbean ..................................................................................... 3

3 Literature Review ....................................................................................................................... 5 4 Methodology and Data ............................................................................................................... 8 4.1 Data and Sources ............................................................................................................... 9 5 Estimation and Results ............................................................................................................... 9 5.2 Results and Discussion .................................................................................................... 12 5.2.1 Economic Size (Income) ...........................................................................................................13 5.2.2 Prices ........................................................................................................................................14 5.2.3 Population ................................................................................................................................14 5.2.4 Distance and Other Gravity Variables .......................................................................................15 5.2.5 Marketing Activity .....................................................................................................................15 6 Policy Considerations ............................................................................................................... 16 7 Conclusion ............................................................................................................................... 17 References ...................................................................................................................................... 19 Appendix ....................................................................................................................................... 21 5.1 Modelling and Estimation .................................................................................................. 9

A.1 Source Markets ...................................................................................................................................21

A.2 Model Price Formulas ........................................................................................................................22

A.3 Interpretation of Coefficients .............................................................................................................22